OneSteel gets $64m federal advance

The company has been promised $300 million over four years as part of money to help the steel industry deal with the introduction of a carbon tax.

The Federal Government says the advance is important for the continued viability of OneSteel's Whyalla blast furnace.

OneSteel will use the funds to support its waste reduction and recycling efforts.

There will also be new training for some of its workforce.

Industry and Innovation Minister Greg Combet concedes OneSteel is facing challenges from a high Australian dollar, weak domestic demand for steel and problems on international steel markets.

"We will continue to work closely with the Australian steel industry to ensure that it is a flexible and innovative part of our manufacturing landscape," he said.

Whyalla Mayor Jim Pollock says the investment by OneSteel in skills training will help shore-up its workforce.

"Their targeted skills training for employees ... I think that's a very, very important area where some of this money can go because skills training and skilled employees are going to be hard to come by once all of these other big [mining] projects come up, so I think skills training for employees is an excellent way to go," he said.